04 Jan 2018Posted By: Pooja

No MDR Charges on Debit Card Transaction below Rs 2000

Starting from 1st of January 2018 customers will not be charged any kind of transaction charges for payments made through their debit card, BHIM app or any other payment options for transactions up to Rs 2,000. In order to give a push to Digital transactions in India, Union Cabinet approved the proposal that government will bear the merchant discount rate (MDR) charges for transactions up to Rs 2,000 made through customers debit card, BHIM UPI or any Aadhaar-enabled payments systems.

What is MDR?
Merchant discount rate is a fee charged to a merchant by a bank for providing debit or credit card payment services.

Now from 1st of January 2018, MDR will be borne by the central government for about two years by reimbursing those charges to banks. The decision is expected to have an impact of about Rs 2,512 crore on national treasure which was taken at the Cabinet meeting chaired by Hon. Prime Minister Narendra Modi.

Last month RBI has decided to rationalize the framework for MDR applicable on debit card transactions based on the category of merchants.
RBI had said about small merchants having a turnover of less than Rs 20 lakh in the previous financial year can’t be charged more than 0.4 percent per debit card and MDR paid to the bank cannot be exceeded to Rs 200.

Now on the other side merchants having a turnover of about Rs 20 lakh or above during last financial year cannot charge more than 0.9 percent per debit card and MDR paid to a bank cannot exceed Rs 1,000.

Ultimately this decision will help customers getting their charges waived off for transactions up to Rs 2000 on payments via Debit card, BHIM App or any other Aadhaar enabled payment system.

Give a Reply

Fill up the form

E-startupIndia Mobile App


Download our free Android App and get realtime update on your order status.
Easily connect with our professionals handling your order over chat & mobile.
Never miss business compliances due date with advance notifications.

Get E-startupIndia in your mobile

Why Choose Us

e-startupindia member of GOOGLE

Serving business owners with an Average 4.8+ Google Rating.

e-startupindia certified #AxixBank

Trusted by Axis bank to cater its clients all licensing & compliance needs.

e-startupindia NG Alliance Partner

Providing lending solutions for business needs with NeoGrowth.

e-startupindia Google Partner

Open Neo bank account worldwide & provides cross-border remittance solutions.

e-startupindia member of CII

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

e-startupindia certified #Etstartupindia

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

e-startupindia Google Partner

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

Popular Services

Private Limited Company | Public Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Sole Proprietorship Firm | Section 8 Company Registration | USA Company Registration | UK Company Registration | UAE Company Registration | Singapore Company Registration | Company Registration Hong Kong | Import Export Code | IEC Modification | AD Code Registration | Spice Board Registration | US FDA Certification | ISO 9001 2015 | ISO 14001 EMS | ISO 22000 FSMS | ISO 27001 ISMS | ISO 50001 Energy Management | ISO 45001 | ISO Surveillance | ISO Certification | MSME Registration | FSSAI Registration | Shop Establishment Registration | Barcode Registration | Coffee Board Registration | Startup India Certificate | ZED Certification | Trademark | Trademark Objection Reply | Trademark Opposition | Trademark Hearing | Trademark Formality Check Fail | Website Development | Patent | Copyright | Design Registration | Business Name Suggestion | Logo Designing | Trademark Assignment Service | GST Registration | GST Modification | GST Cancellation | GST Return Filing | GST Invoice Software | UIN Registration | Income Tax Return | Income Tax Notice | Income Tax Refund | Income Tax Assessment | TDS Return Filing | Form 15CA / CB | Professional Tax Registration | 12A and 80G Registration | FCRA Registration | CSR Registration | Project Report | Pitch Deck | Seed Fund Startup India | Accounting for Ecommerce | Virtual cfo services in india | Bookkeeping & Accounting | Private limited Company Annual Compliance | Form INC-22A | Form 15CA / CB | Company Strike Off | Commencement of Business | Fssai annual return | Online CA Consultancy | Income Tax Return Filling | LLP Annual Compliances | Form DIR-3 KYC | Virtual Office for Company Registration |


  • e-startupindia South Asia's Leading Multimedia News Agency
  • Business Standard
  • e-startupindia Outlook
  • e-startupindia Htmedia
  • e-startupindia Yahoo News
  • e-startupindia New Delhi Times
  • e-startupindia India.com
  • e-startupindia IBTN9